You are given summarized results of an electrical engineering business, as follows. All figures are in £000.
Question:
Profit and loss account
(a) Prepare a table of the following 12 ratios, calculated for both years, clearly showing the figures used in the calculations: current ratio quick assets ratio stock turnover in days
debtors' turnover in days creditors' turnover in days gross profit %
net profit % (before taxation)
interest cover
dividend cover
ROCE
gearing.
(b) Making full use of the information given in the question, your table of ratios and your com monsense, comment on the apparent position of the business and on the actions of the management.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
International Financial Reporting and Analysis
ISBN: 978-1408075012
5th edition
Authors: David Alexander, Anne Britton, Ann Jorissen
Question Posted: